BOM COSTING IS THE STRATEGIC ACTIVITY OF ALL Electronic Manufacturing Services Companies

IT’S NOT A SECRET: BE THE FIRST TO PROVIDE THE QUOTE TO A CUSTOMER IS A KEY FACTOR FOR SUCCESS.

Even, some EMS says it raises their chances of winning a deal of up to 80%. The target lead time for submitting the quotation to the customer use to be about two weeks. The most difficult part is not to reach this goal once, but to ensure continuous performance.

Quote lead times expected by the customer are always shorter, more and more often they expect it to represent less than 1 week.

DIFFERENT CUSTOMER EXPECTATIONS

For a prototype, the leadtime to provide the quotation will be considered as critical by the customer. For mass production, it is of course the price of the quotation which will be a key point. Quotation request can also be simple BOM costing evaluation. This concern mostly existing customers, at the early stage of their product design where R&D teams need to evaluate the cost of different technical solutions. At last, for benchmark or sourcing situation a cost effective quotation will be a major criterion in the customer selection process.

ORGANIZATION

The BOM costing can be done by a single person, project sourcer, who takes care of quoting all material of the BOM. The second option is to have a sourcing team, between who the different material will be splitted based on part family. In the first case, controlling the leadtime is more easy, but it requires wide skilled people. In the second case, the workload can be splitted but it requires additional work for coordination and data consolidation.

EMS

BUYMANAGER SUPPORT ALL THOSE CONCERNS

CUSTOMER BOM COSTING FOR EMS. FASTER. WITH LESS EFFORTS.

BOM COSTING: UNGRATEFUL WORK

The people in charge of BOM costing spend a lot of energy to provide the quotation in the best lead time possible. Sending RFQs to suppliers, reminding them, collecting a huge quantity of data, synthesize all of the pieces of information… Quite often, the feedback consists in: “The cost is too high!”, “We are late” or “We need to quote another quantity”. If sourcers keep being the most appropriate resources to take care of BOM costing, they prefer to work on sourcing, analysis and negotiation activities; instead of time-consuming data collection and manipulation activities. The management needs to find a compromise, but always with the same objective: give an answer to their customers within the best lead time.

EMS

WHY APPLYNG A DIFFERENTIATED APPROACH?

Throughout the development process, it is necessary to evaluate products’ manufacturing costs and in particular to enhance the EMS companies are faced with two antagonist problems: work on BOM costing within very short leadtime to meet customers’ expectations and set-up a purchasing strategy to meet company’s performance and profit requirements. In addition, short manufacturing leadtime expectations require an accurate control of inventory and procurement leadtime. To succeed, it’s necessary to apply a differentiated approach, which consist in using the appropriate tool for each specific case.

To succeed, it’s necessary to apply a differentiated approach, which consists in using the appropriate tool for each specific case.

COMPLEX CONCERNS ALL ALONG THE PROCESS

BOM COSTING PROCESS CAN BE SUMMARIZED INTO 5 STEPS
EMS

THERE ARE SEVERAL CONCERNS ALL ALONG THE PROCESS AMONG WHICH: